Federal Appeals Court Upholds New Jersey Anti-Staffing Law
Industry challenge to benefits-matching requirement still alive
In a ruling that is disappointing, but not entirely unexpected, the U.S. Third Circuit Court of Appeals has rejected an appeal by industry groups seeking to overturn New Jersey's "Temporary Worker's Bill of Rights." This law
System One and Acara Resolve Tempnapping Case
SLN has been following a case involving an attempted workforce transfer by a staffing firm client. The client, Alstom Transportation, attempted to move the workers of System One to its new staffing supplier, Acara Solutions. System One was of course not happy about this and sued Alcara under two theories:
California PAGA Reforms: Band Aid on a Broken Leg?
Updated law maintains penalties, creates new avenues for litigation, and hides a major win for labor
While some are optimistically celebrating the California PAGA "reforms" that went into effect on July 1, the complex new PAGA structure is just more of the anti-employer over-regulation that makes California the
Court: FTC Ban on Non-Competes Invalid, but...
Judge declines to enter national injunction
The Federal Trade Commission's rule banning all non-complete agreements, slated to become effective on September 4, 2024, has generated much commentary since it was approved in April of this year. When the Rule came out in April, Staffing Legal news noted: "
USERRA Presents Staffing Agency Challenges
The Uniformed Services Employment and Reemployment Rights Act (USERRA) is a federal law that protects members of the military, including the Reserves, and requires employers to return them to their civilian jobs following a period of uniformed service. For staffing agencies, USERRA presents unique challenges, because their assigned employees'
Minnesota Authorizes Customers to Poach Temps
Broad language may even bar most conversion fees
Last year I wrote about Minnesota's ban on non-compete agreements, and methods that may remain available to employers to protect their businesses from unfair competition. Now the Land of 10,000 Waters is back at it again, this time with
TRC Staffing Hit with Two Class Actions Over Data Breach
The trend continues
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Atlanta based TRC Staffing Services, Inc., d/b/a TRC Talent Solutions, has been hit with two competing class actions (copies attached below) arising out of a March 2024 ransomware attack. The pattern is becoming familiar. Following a cyber event, a
Partial Industry Win Possible in New Jersey War on Staffing
But major problems will remain unless appeal succeeds
Last Year Staffing Legal News reported on New Jersey's "Temporary Worker Bill of Rights," which is actually a transparent attempt to destroy a large segment of industrial staffing in the state. The law requires industrial staffing firms to
Addison Group Manager Fired - Lawsuit Follows
Bonus dispute with CEO triggers retaliation and defamation claims
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Dak Gilinski, the former Managing Director of Addison Group's Los Angeles office, has filed a multi-count lawsuit against the company after being terminated following a dispute with Addison'
Health Care Tech Firm Faces Overtime Class Action
An overtime class action has been filed against CereCore, a subsidiary of hospital giant HCA Healthcare. CereCore began life as HCA's in-house technology department, but in the last 15 years morphed into a stand-alone company offering healthcare staffing services nationally and internationally, with a focus on technology and
DOL's New Salary Threshold is Effective on July 1 Absent Successful Legal Challenge
Unless a pending legal challenge succeeds, beginning July 1, 2024, U.S. employers must pay their salaried employees at least $844 per week ($43,888 per year) in order to exempt them from overtime pay under the Fair Labor Standards Act. The Department of Labor's new rule is
Memorial Day Remembrance
This weekend let us remember all the veterans who served our country from the Revolutionary War until today. I will be thinking of my late father, Dr. William E. Josey, who at age 19 served on the destroyer/mine-sweeper USS Ellyson in the South Pacific during the Second World War.
Allegis vs Jobot: Jobot Wins Again
Allegis Group takes another loss in its home court
Background
Last year Staffing Legal News reported on a noncompete loss suffered by Allegis in its "home court" in Maryland, where the company is based. In that case, Allegis and its subsidiary Aston Carter sued former employee Christopher J.
Important Takeaways from Insight Global's $2.7 Million Cybersecurity Settlement
Companies performing on federally funded contracts have significant exposure to cybersecurity lawsuits and damages under the False Claims Act.
Employment Candidate Files Suit Against Recruiting Agency Major, Lindsey and Africa
Candidate alleges Allegis Group subsidiary dumped her after she filed discrimination claim against her former employer
In a blistering 21-page complaint filed in the U.S. District Court for the Middle district of Maryland (attached below), Attorney Gita Sankano has accused legal recruiting giant Major, Lindsey and Africa ("MLA&
FTC Ban on Non-Compete Agreements Not Likely to Hold Up
Staffing is a highly competitive business, and non-compete agreements are widely used by employers in the industry. In coming days, there will be a lot of news about the Federal Trade Commission's move to outlaw almost all existing non-compete agreements, defined as any agreement that prevents an employee
U. S. Supreme Court Broadens the Basis for Discrimination Claims
Surprising ruling means that employers can expect more lawsuits
The most common legal claims brought against staffing firms (and employers in general) are lawsuits brought under Title VII of the Civil Rights Act of 1964, as amended, and its state and local variants. Last week, the U.S. Supreme Court
Double Dipping Employees on the Rise
Cross Country Staffing lawsuit highlights the problem - a recruiter with three full time jobs...
The rise of remote work has created opportunity for workers to hold more than one "full time" job. A 2023 report by organizational consultant McKinsey estimates that 5% of a typical company'
Aerotek Wins the Right to Arbitrate- But Loses the Arbitrations
In a landmark 2021 decision in favor of staffing giant Aerotek (and beneficial to employers in general), the Texas Supreme Court ruled that former Aerotek temporary employees could not invalidate their electronic signatures on arbitration agreements merely by denying that they signed them. The ruling in this employment discrimination case
Big Law Recruiter Loses Appeal of $6,391,732 Award to Former Employer
Collection efforts have recruiter on the run
In September 2022, Staffing Legal news reported that a Texas federal judge found legal search recruiter Evan P. Jowers was liable to his former employer, MWK Recruiting, for misappropriating candidate lists and violating his non-competition agreement:
Justice Department Repeatedly Punishing Staffing Firms for Job Posting Violations
It's easy pickings for DOJ regulators
There is a right way and a wrong way to address immigration status in a U.S. job posting. The DOJ website explains here. It's pretty simple:
Right way: "Must be authorized to work in the U.S."
Court Denies Acara's Motion to Dismiss System One's Tempnapping Case
Injunction Hearing Scheduled
In unusually rapid fashion, U.S. District Court Judge Maryland Horan has denied Acara Solutions' request for dismissal of System One's "tempnapping" lawsuit filed last month in Pennsylvania. The lawsuit (attached below) seeks to prevent Acara from hiring 200 System One workers
Acara Responds to System One's "Tempnapping" Suit
Last month SLN reported on System's One's lawsuit challenging a client's attempt to transfer its entire assigned workforce to competitor Acara Solutions. Acara has now responded and seeks dismissal of the case (Acara's Brief attached below). As we pointed out in the
Aerotek Filing Big Debt Collection Lawsuits
Is it the economy or just business as usual?
As one of the biggest players in the staffing industry, it is not surprising that Aerotek spends more time in court than most staffing firms. Lately, the firm has been chasing clients for some pretty large unpaid bills. This may be
Staffing Agency TalentLaunch Named in Data Breach Class Action
Staffing agency TalentLaunch, LLC has been named in a class action (copy attached) filed in the U.S. District Court for the Northern District of Ohio. The lawsuit is part of the newly emerging legal industry of data breach class actions.
ASA-Supported Staffing Agencies Overturn Benefit Matching Requirement in Illinois
In a significant, albeit partial, victory, the ASA affiliated Staffing Services Association of Illinois and several staffing firms have won a federal court injunction halting the enforcement of Illinois' recently imposed requirement that industrial staffing firms match their clients' benefits.
Healthcare Giants in Heated Texas Noncompete Battle
On November 13, 2023, AMN Healthcare filed a lawsuit (attached below) against Aya Healthcare and Robert Wolf, who before his hire by Aya was a tenured (20 years) senior manager at AMN.
Fair Credit Reporting Act Lawsuit Filed Against Onin Staffing
A Missouri lawsuit against Onin Staffing (attached) serves as a reminder that alarm bells should go off when a client rejects a candidate because of a background check result.
Kimco Staffing Services Hit with Data Breach Class Action
California-based Kimco Staffing Services was just served with a class action lawsuit (attached below) arising out of a June 2023 cybersecurity event.
System One Brings "Tempnapping" Suit Against Acara Solutions
Is this a trend?
This sort of thing used to happen more frequently 25 years ago. A client decides to ditch its existing staffing agency and cuts a deal with a competing agency to take over the incumbent agency's workforce. Sometimes the issue was service, but more often
TEKsystems Battling Recruiter Class Actions on Both Coasts
On February 13, 2024, California U.S. District Court Judge Jacqueline Scott Corley certified a class of California TEKsystems recruiters in a wage/hour overtime case against the Allegis Group subsidiary.
Class Action Against Staffing Firm Points to Client's Faulty Timekeeping System
Last week we warned that: "Staffing firms are especially vulnerable to clients that control the timekeeping systems, and this can include the time entry systems of vendor management or managed service companies." And right on cue, we have a California class action that illustrates the point.
Another Shoe Drops in Lawsuit Against Legal Recruiter
Former employer wins attorney's fees - final award now $6,391,732.
Hayes Medical Staffing Wins Injunction Against Jobot Hires
But court declines to enforce noncompete agreements.
2023 HIGHLIGHTS
2023 was the first full year of publication for Staffing Legal News, and I am gratified by the response, especially the encouragement and positive comments from subscribers.
